Nigeria: Power Woes to Worsen

Nigeria’s power generation problems may worsen following the shutting down of a major gas facility belonging to Anglo Dutch giant, Shell Petroleum Development Company (SPDC), at Soku, the country’s oil and gas nerve center.

Power generation has already dropped by over 800 megawatts owing to inadequate gas supply to Egbin and Sapele Power Stations.
Also, Nigeria’s gas export and domestic supply yesterday suffered major setbacks as Nigeria Liquefied Natural Gas Ltd (NLNG), supplier of around 10 per cent of the world’s LNG, declared force majeure on gas delivery to its customers.

This action came after Shell shut down its Soku Gas Plant to repair pipelines damaged by vandals and also declared force majeure on gas supply to NLNG.

Shell’s Soku Gas Plant supplies 40 per cent of NLNG’s gas requirements.

The declaration of force majeure enables companies to miss contractual obligations to their customers without incurring any legal liabilities due to circumstances beyond their control.

SPDC spokesman Precious Okolobo said in a statement that the temporary shut down of the Soku Gas Plant in Rivers State was to enable the company carry out urgently needed repairs resulting from damage caused by a significant increase in condensate theft from the plant’s pipelines.

AllAfrica